Very few organizations actively audit for Fraud. Rather, their auditors are content to conduct financial, operational and compliance audits and to investigate Fraud only when symptoms are so egregious that fraud is suspected.…
Read moreThe five (5) ways to eliminate Fraud opportunities are: (1) having good internal controls; (2) discouraging collusion between employees and customers or vendors and clearly informing vendors and other outside contacts of your company’s policies against fraud; (3) monitoring employees and providing a hotline (whistle-blowing system) for anonymous tips; (4)…
Read moreCreating a culture of honesty, openness, and assistance includes three (3) factors: (1) hiring honest people and providing fraud awareness training; (2) creating a positive work environment, which means having a well-defined code of conduct, having an open-door policing, not operating on a crisis basis, and having a low-fraud atmosphere;…
Read moreMost organizations do not have a comprehensive approach to preventing and deterring Fraud. In fact, most companies don’t think about fraud until they experience one. When fraud occurs, they go into crisis mode, investigate and try to resolve the fraud, and then wait until another fraud occurs. A more comprehensive…
Read morePeople typically become involved in already existing fraud schemes as a result of power that is exercised on them by another individual. The five (5) separate types of power include: reward, coercive, expert, legitimate and referent. It is through either one or a combination of several types of power that…
Read morePeople commit fraud because of a combination of perceived pressure, rationalization and opportunity. The majority of frauds starts small as the result of an immediate financial need. Once individuals gain confidence in their fraudulent scheme, the fraud continues to get larger and larger until it is discovered. The fraud triangle provides a…
Read moreFraud perpetrators usually cannot be distinguished from other people on the basis of demographic or psychological characteristics. People that commit fraud are usually good people who consider themselves to be honest – they just get caught up in a bad situation as a result of pressure, opportunity and rationalization.…
Read moreThere is no universal definition of fraud in law and definitions and scope what constitutes fraud vary from one jurisdiction to another. There are three main categories of fraud that affect organizations:…
Read morePrivate Automatic Branch Exchange Fraud
Within the domain of Private Automatic Branch Exchange (PABX) fraud, various forms of financial and economic crimes can occur. PABX fraud refers to illegal practices aimed at abusing or manipulating telephone systems within an organization to gain financial advantage. Some examples of financial and economic crimes within this domain are:…
Read moreComputer Software Service Fraud (CSSF)
Within the domain of computer software service fraud, various forms of financial and economic crimes can occur. Computer software service fraud refers to illegal practices where fraudulent services related to computer software are offered, often with the aim of gaining financial advantage. Some examples of financial and economic crimes within…
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